HCL Technologies wins

HCL Technologies wins Rs 3,000 crore deal from Pepsi

 

 

        BANGALORE: HCL Technologies has bagged a $500-million (Rs 3,000-crore) IT outsourcing deal from beverage giant PepsiCo in a massive win for its infrastructure management services (IMS) business. The fourth-largest Indian IT services firm piped HP to bag the seven-year IT deal.

A PepsiCo spokesperson confirmed the development, saying, "After careful consideration, we are making some changes to our global IT organization that will enable us to stay competitive while meeting the needs of our business. HCL has systems, expertise and scale to help PepsiCo in this endeavour. As a policy we do not disclose financial details."

In response to a TOI query , HCL Technologies said, "We are pleased to be working with PepsiCo. However, we are not able to discuss further details at this stage."

PepsiCo, which owns brands like Lays and Tropicana, had signed a $100-million deal with incumbent IT service provider HP in 2006 for managing its data centre oper ations. The contract, which came up for renewal last year, was aggressively pursued by the country's largest IT firm TCS and Nasdaq-listed Cognizant.

PepsiCo has had long-term engagements with a host of IT service providers in the past. "It signed a deal with IBM in 2011 for finance and accounting. It had also signed up with The Portland Group for procurement, Kuehne and Nagel for BPO services and Hewitt largely for HR," said Peter Bendor-Samuel, CEO of IT research and advisory firm Everest Group.

HCL's infrastructure services grew 5.1% sequentially in Jan-March quarter, riding on the pent-up demand for rebids or renewals. IT advisory firm ISG said $114 billion worth of IT contracts are set to expire in 2014, up 4% from 2013 and up 19% from 2012. A large number of deals are infrastructure-only contracts with a total value of $48.6 billion this year alone.